GSM - Ferroglobe stock slides as demand slowdown weighs on Q3 performance

• Ferroglobe ( NASDAQ: GSM ) shares fell 14% in Wednesday's trading after the specialty metals firm reported lower earnings and revenue for third quarter.
• Revenue fell 29.5% over the prior quarter to $593.2M, with net profit down from $185.1M in Q2 to $98.8M. The decline in revenue was primarily attributable to lower volumes across product portfolio, and lower pricing in main products.
• Adjusted EBITDA of $185.3M fell 38.9% over the prior quarter, while adjusted EBITDA margin  decreased 5 percentage points to 31%. The decline was primarily attributable to the decrease in sale volumes and price.
• The firm generated positive operating cash flow of $54.9M compared to negative $34.67M in the year-ago quarter.
• The total cash balance was $236.8M as of September 30, 2022, down from $306.5M as of June 30, 2022.
• CEO comment: "During the third quarter, we have seen a challenging environment driven by demand slowdown and continued volatility in energy prices in Europe. Steel production has been heavily curtailed in Europe, where we have also seen massive closures of aluminum plants."

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